http://news.com.com/2010-1028-5104537.html The Massachusetts Internet tax mystery November 10, 2003, 4:00 AM PT By Declan McCullagh A mystery is brewing in Massachusetts over how state tax collectors learned the identities of residents who bought cigarettes over the Internet. Since early this year, the Massachusetts Department of Revenue has been busy firing off 3,264 letters to online shoppers, ordering them to submit a check for unpaid cigarette taxes, plus interest and penalties--or risk fines and imprisonment. Like its tax-happy neighbors of New York, Rhode Island and Connecticut, the Bay State ranks in the five most expensive places in the United States to buy cigarettes. Massachusetts levies $1.50 a pack in state excise taxes, not counting state sales taxes and local taxes. The 7-Eleven store on Hanover Street in Boston's North End sells a carton of Marlboros for $55.75. Online retailer DirtCheapCig.com sells Marlboros for between $27.19 and $31.19 plus shipping. That's a huge competitive advantage for DirtCheap, explained in large part by its location in the verdant tobacco fields of Kentucky, which has the lowest tobacco excise taxes in the nation. What's a great deal for Massachusetts smokers horrifies the state's tax collectors, who acknowledge that they've obtained the names and addresses of DirtCheap customers but refuse to divulge their source. What's a great deal for Massachusetts smokers horrifies the state's tax collectors. The two possible culprits: DirtCheap and the United Parcel Service, which the company uses to ship cigarettes. [...remainder snipped...] _______________________________________________ Politech mailing list Archived at http://www.politechbot.com/ Moderated by Declan McCullagh (http://www.mccullagh.org/)
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